Do you need a Grant of Probate?
/A Grant of Probate is a legal document that gives you the authority to manage a person’s estate after they have died. It will help you to access bank accounts, sell assets, deal with property and settle debts. Once everything has been finalised, it also allows you to distribute the assets to the beneficiaries under the terms of the Will.
If the person left a will, it’s called a Grant of Probate. If they didn’t, a Grant of Letters of Administration (or Grant of Representation) is used but both documents work in much the same way.
When do you need a Grant of Probate?
As the named executor of a Will, you will need to apply for a Grant of Probate if the person who died:
● owned their own home and it was in their sole name
● owned shares in their sole name
● had over £20,000 in the bank (not a joint account)
Probate is necessary to sell or transfer property and to deal with high-value assets. It’s important to note that it doesn’t depend on whether there’s a will or not but on the financial situation of the person who died.
You’re unlikely to need probate if the person:
● owned the house as joint tenants
● kept their savings in a joint account
● didn't own high value assets
● had less than £20,000 in savings
In these cases, the property will simply transfer to the surviving owner. Most banks will also release up to £20,000 without probate. Do check with your own bank, however, as every bank is different.
How much does it cost to get a Grant of Probate?
Our probate specialists will take care of obtaining the Grant of Probate and can handle all the administration of the estate for you.
Legal Fees: £750 - £1,000 plus VAT*
Probate Application Fee: £273
Copies of the Grant: £1.50 each
Disbursements
Payments to third parties such as HMRC on your behalf
*These legal fees would be based on the value of the assets being less than the nil rate band.
Currently, each individual gets a nil rate band of £325,000 which if you’re married or in a civil partnership passes to your surviving spouse, making a total of £650,000 before IHT is payable. Additionally, if you leave your family home to your children, they also become eligible for the Residence Nil rate band of £175000. This means the qualifying estate of a surviving spouse or civil partner can pass on up to £1 million without Inheritance Tax liability.[1]
Let THP Support Your Probate Process
We’re here to explain all the probate processes to you and provide you with free, initial guidance. Call us on 0161 480 2629 to talk to a member of our experienced team or email enquiries@thehowepractice.co.uk
You end up out of pocket
As explained, being an executor of a will is not a paid job. Occasionally, the person who has died may have left you something in their will to cover your time, but if this has not happened, you can only claim direct out of pocket expenses.
Administering an estate, however, may take many hours. Expenses can soon mount up as you incur costs for petrol, telephone calls and lost holidays, not all of which are recoverable. It is imperative that you keep detailed, accurate records so that you can defend yourself if you are ever challenged.
What’s more, if the beneficiaries receive less than they might have hoped for from the estate, you need to make sure that you do not feel under pressure to make up the difference from your own pocket.
Remember that if you instruct a solicitor, any professional costs for the time spent in administering the estate are deducted before the funds are distributed.
People sometimes think appointing a solicitor is an expensive option. However, when you weigh up the time and stress involved in doing the job yourself, you may feel it is money well spent to get the estate resolved quickly, accurately and without any family friction.
Professional charges must be seen to be fair and proportionate to the work involved as well as the size of the estate. In the past, it was customary for banks and other professionals acting as executors to charge a percentage of the value of the estate in fees. In some cases, these could add up to quite significant amounts and seem disproportionate to the amount of work undertaken.
Current practice is only to charge for time spent or a fixed fee. If you do appoint a professional executor, make sure they work in this way and let you know the fees upfront.
What Next?
You’re now aware of the risks and potential pitfalls in administering an estate and even more importantly how to avoid them.
It’s for you to decide whether you think you have the time, knowledge and emotional stamina to carry out the role of executor yourself or if you would prefer to delegate some of your responsibilities.
Even if it’s just some advice at the outset to set you on the right track, consulting a professional can save you a lot of time, stress and hassle.
How THP Can Help
The Howe Practice is a family firm of solicitors located in Stockport, offering legal services in
conveyancing, life and estate planning and probate. Our specialist probate team has a wealth of experience in dealing with all aspects of the administration of estates.
We take a sensitive yet professional approach, focusing on alleviating the stress and worry for you. As part of this, we offer a free 30-minute Probate Information session. This is your opportunity to ask whatever questions you may have.
We will help you to understand:
● Your responsibilities as an executor for identifying the assets and liabilities of the estate
● What it means to be accountable to the beneficiaries.
● How to identify whether the deceased left a will and how to interpret the will .
● What happens to the estate if the deceased did not leave a will.
● Whether a grant of probate is required.
● How any inheritance tax liability may be reduced
Our aim is to offer clear guidance and practical advice at every step. We strongly believe that the charges for administering an estate and dealing with probate should be fair and proportionate with the time spent. This is why we don’t charge a percentage of the assets and are totally transparent about what our fees cover.
So, let us help you to navigate the path of being an executor by making the process as smooth and straightforward as possible.
Book your free 30-minute Probate Information session now:
by calling 0161 480 2629 or emailing enquiries@thehowepractice.co.uk